I assent
SIR ANEROOD JUGNAUTH
President of the Republic
ARRANGEMENT OF SECTIONS
Section
PART I-PRELIMINARY
1. Short title
2. Interpretation
PART II - ESTABLISHMENT OF THE FINANCIAL REPORTING COUNCIL
3. Financial Reporting Council
4. Objects of Council
5. Functions of Council
6. Powers of Council
7. Constitution of Council
8. Disqualification from membership
9. Term of office
10. Vacation of office
11. Filling of vacancies
12. Meetings of the Council
13. Decisions of the Council
14. The Chief Executive Officer
15. Delegation of powers
16. Committees
17. Panel of experts
18. Standards Setting Review Panel
19. Financial Reporting Monitoring Panel
20. Audit Practice Review Panel
AN ACT
To regulate the reporting of financial matters and to establish the Financial
Reporting Council, the Mauritius Institute of Professional Accountants and the
National Committee on Corporate Governance
ENACTED by the Parliament of Mauritius, as followsPART I - PRELIMINARY
1. Short title
This Act may be cited as the Financial Reporting Act 2004.
2. Interpretation
In this Act, unless the context otherwise indicates
"annual report" means the document that an entity issues on an annual basis on its affairs, including
its financial statements together with the audit report thereon, and the report from the Board of
Directors;
annual report has the same meaning as in the Companies Act 2001;
"annual revenue" means revenue accruing over the preceding 12 months;
"approved auditor" has the same meaning as in the Companies Act 2001;
"audit" has the same meaning as in the International Federation of Accountants (IFAC) Code of
Ethics for Professional Accountants;
"audit firm" means a firm which provides audit services;
"auditing standards" means the auditing standards issued by the Council under section 73 the auditing
standards adopted by the International Auditing and Assurance Standards Board (IAASB);
"Code of Corporate Governance" means the Code of Corporate Governance issued by the National
Committee on Corporate Governance under Part V;
"Code of Professional Conduct and Ethics" means the Code established under section 46;
"Council" means the Financial Reporting Council established under section 3;
"director" has the same meaning as in section 128 of the Companies Act 2001, and includes members
of the Board of state owned enterprises;
"effective date" means the date as may be prescribed;
"entity" means any person or body of persons, whether incorporated or unincorporated;
"financial reporting and accounting standards" means the financial reporting and accounting standards
issued by the Council under section 72;
"financial statement" means the balance sheet, income statement or profit and loss account, statement
of changes in equity, cash flow statement, notes and other statements and explanatory material
thereon, whether interim or final;
financial statements has the meaning assigned to it in the International Financial Reporting
Standards (IFRS) adopted by the International Accounting Standards Board (IASB);
"financial year" means the period starting from 1 July to 30 June in the following year;
financial year has the meaning assigned to it by section 2A of the Finance and Audit Act;
FIU has the same meaning as in the Financial Intelligence and Anti-Money Laundering Act;
"IASB" means the International Accounting Standards Board or its successor body;
"IFAC" means the International Federation of Accountants or its successor body;
"IFRS" means the International Financial Reporting Standards issued by the International Accounting
Standards Board or the International Accounting Standards issued by the International Accounting
Standards Committee, and any standards, issued by the bodies or their successor bodies;
IFRS means the International Financial Reporting Standards issued by the International
Accounting Standards Board and any standards issued by the Board or its successor;
"independence" means independence of mind and independence in appearance;
"independence in appearance" means the avoidance of facts and circumstances that are so significant
that a reasonable and informed third party, having knowledge of all relevant information, including
any safeguards applied, will reasonably conclude that the integrity, objectivity or professional
scepticism of a firm or a member of the audit team had been compromised;
"independence of mind" means the state of mind that permits the provision of an opinion without
being affected by influences that compromise professional judgment, allowing an individual to act
with integrity, and exercise objectivity and professional scepticism;
"licensed auditor" means a person who has been issued a licence under section 33;
"Mauritius Institute of Directors" means the Mauritius Institute of Directors set up by the National
Committee on Corporate Governance under section 65;
4. Objects of Council
The objects of the Council shall be to(a) promote the provision of high quality reporting of financial and non-financial information by
public interest entities;
(b) promote the highest standards among licensed auditors;
(c) enhance the credibility of financial reporting; and
(d) improve the quality of accountancy and audit services.
5.
Functions of Council
The functions of the Council shall be to
(a) lay down financial reporting, accounting and auditing standards;
(a) ensure, where applicable, the adoption of IFRS and the International Auditing and Assurance
Standards;
(a) enter into such contracts as may be necessary or expedient for the purpose of discharging its
functions; borrow such sums of money or raise such loans as it may require for the purpose of
discharging its functions;
(b) cooperate with, or become a member or an affiliate of, any international body, the objects or
functions of which are similar to or connected with those of the Council;
(c) impose such charges or fees as may be required under this Act
(d) levy such charges or fees as may be reasonable for services and facilities provided by the
Council; and
(e) issue rules, codes, guidelines and standards relating to financial reporting, accounting, and
auditing.
7.
Constitution of Council
(1) The Council shall consist of(a) a Chairperson suitably qualified and experienced in the field of business, finance,
accountancy or law to be appointed by the Prime Minister;
(b) a Deputy Governor of the Bank of Mauritius;
(c) the Chief Executive of the Financial Services Commission;
(d) the Registrar of Companies;
(e) an elected member of the Mauritius Institute of Professional Accountants;
(f) an academic from a tertiary education institution, knowledgeable in accounting and financial
reporting matters to be appointed by the Minister;
(g) a professional from the financial services sector suitably qualified and experienced in the
field of business, finance or law who shall be appointed by the Minister;
(h) the Chairperson of the Mauritius Institute of Professional Accountants;
(i) the Chairperson of the Mauritius Institute of Directors.
(2)
The Council shall not, at anyone time, consist of more than 2 members who are licensed
auditors.
(3)
An alternate member may be appointed for every member of the Council, except for the
Chairperson.
(5)
Every member shall be paid such fees as the Council may, with the approval of the
Minister, determine.
8.
9.
Term of office
(1) Every member shall, subject to subsections {4) and (5), hold office for a period of 3 years.
(2) A member may be re-appointed but may not serve for more than 6 out of every 8 years.
(3) A member whose term has expired shall continue to hold office until his successor has been
appointed.
(4) In the computation of the total period for which a member has held office, any period during
which the member has held office after the expiry of the member's term until the appointment of a
successor, shall not be taken into account.
(5) The Minister may, when appointing the first Council, appoint any members for a period of 2
years.
(6) A member may resign from the Council at any time by giving not less than one month's written
notice to the Minister.
(7) For the purposes of this section, member means a member of the Council appointed under
section 7 (1) (f) and (g).
10.
Vacation of office
The seat of a member shall become vacant
(a) where he resigns;
(b) where he becomes disqualified from membership under section 8;
(c) where he no longer holds the office by virtue of which he became a member;
(d) where he has been absent without any leave from the Council for 3 consecutive meetings or
three quarters of the meetings of the Council during a financial year; and
(e) in the case of alternate members, if he has been absent without any leave from the Council for
3 consecutive meetings or three quarters of the meetings of the Council for which he was
delegated to attend during a financial year.
11.
Filling of vacancies
(1) Any vacancy of the seat of a member referred to in section 7(1)(a), (f) and (g) shall be filled
not later than 15 days from the date of the occurrence of the vacancy.
(2) Any person appointed under subsection (1) shall hold office for the remainder of the term for
which the vacating member was appointed.
12.
13.
14.
14.
(3) The Chief Executive Officer shall be responsible to the Council for the proper administration
and management of the functions and affairs of the Council, in accordance with the policies laid
down by the Council.
(4)The Chief Executive Officer shall
(a) recruit such employees and consultants on such terms and conditions as may be approved
by the Council for the effective performance of the functions of the Council;
(b) prepare the budget and programme of activities of the Council for approval;
(c) conduct such investigations as the Council may direct; and
(d) appoint, on such terms and conditions as he deems fit, suitably qualified and experienced
persons to form part of the panels of experts established under section 17.
(a) prepare and submit, at the appropriate time, the annual budget and programme of
activities of the Council for its approval; and
(b) In the discharge of his functions under the Act, conduct, with the approval of the
Council, such enquiries or investigations as he may deem appropriate.
(5) The Chief Executive Officer, may, with the approval of the Council, delegate any of his
functions, and any power delegated to him under section 15, to such employee as may be
designated by the Council.
(6) The Chief Executive Officer shall, unless otherwise directed by the Council, attend every meeting
of the Council.
15.
Delegation of powers
(1) Subject to subsections (2) and (3), the Council may delegate to the Chief Executive Officer,
or a technical committee of the Council consisting of employees, such of its functions and
powers under this Act as may be necessary to assist in the effective management of the
Council, except
(a) the power to enter into any transaction in respect of capital expenditure of an
amount exceeding 1,000,000 rupees; and
(b) the powers of the Council referred to in section 6(2) (b), (d) and (f).
(2) Subject to subsection (3), no document relating to any transaction referred to in subsection
(1)(a), shall be executed or signed by or on behalf of the Council unless it is signed by the
Chairperson, or in his absence, by any other member appointed by the Council for that
purpose, and the Chief Executive Officer.
(3) In the absence of the Chief Executive Officer, the functions and powers delegated to him
under subsection (1) shall be exercised by such employee as may be designated by the
Council for that purpose.
(4) The Council may withdraw or amend the delegation of its powers and functions made under
subsection (1).
16.
Committees
(1) The Council may establish one or more committees to assist it in the performance of its
functions.
(2) Any committee established under subsection (1) may, at any time, be dissolved or
reconstituted by the Council.
(3) The committee shall consist of such number of persons, whether members of the Council or
not, as the Council considers necessary.
(4) Every member of a committee shall be appointed by the Council on such terms and
conditions as it deems fit.
17.
Panel of experts
(1) The Council shall, for the purposes of this Act, establish the following panels of experts
(a) a Standards Setting Panel a Standards Review Panel;
(b) a Financial Reporting Monitoring Panel;
(c) an Audit Practice Review Panel; and
(d) an Enforcement Panel.
(2) The Council shall determine the number of persons who may be appointed in respect of each
panel.
(3) The panels shall consist of employees of the Council, and such other persons not being members
of the Council, that the Chief Executive Officer determines are necessary.
(3) The panels shall consist of employees of the Council and such other suitable and qualified
persons as may be appointed by the Council.
18.
19.
(2) The Financial Reporting Monitoring Panel shall, in the discharge of its functions under
subsection (1), inform the public interest entity in writing that it may make representations to
the panel.
(3) Subject to this Act and the rules made by the Council, the Financial Reporting Monitoring
Panel shall conduct its monitoring exercise in such manner as it thinks fit.
(4) The Financial Reporting Monitoring Panel shall, where it identifies a failure on the part of the
public interest entity, pursuant to the discharge of its duties under subsection (1), submit its
findings and recommendations to the Enforcement Panel for consideration.
20.
(3) The Audit Practice Review Panel shall, pursuant to the discharge of its duties under
subsection (1), submit its findings and recommendations to the Enforcement Panel for
consideration.
(4) Subject to this Act and the rules made by the Council, the Audit Practice Review Panel shall
conduct its practice review in such manner as it thinks fit.
21.
Enforcement Panel
(1) The Enforcement Panel shall consider any findings and recommendations referred to it by the
Financial Reporting Monitoring Panel, the Audit Practice Review Panel, or the Council and
shall, on the basis of the findings and recommendations determine the appropriate action to
be taken.
(2) The Enforcement Panel shall, within 15 days of the receipt of the findings and
recommendations referred to in subsection (1) notify the public interest entity, the licensed
auditor or audit firm, as the case may be, of its decision.
22.
23.
(9) The Council shall endorse the recommendation of the Hearing Review Committee, unless it considers
that the recommendation is manifestly unreasonable.
(10) The Council shall inform the party having lodged an objection of its final decision as soon as is
reasonably practicable.
25.
Code of Ethics
The Council shall adopt a Code of Ethics to establish the rules and standards of conduct to be
observed by every member of the Council, Panel, Committee, or an employee or consultant of the
Council, in the discharge of their respective functions and duties.
26.
Cooperation mechanism
(1) The Council may enter into a Memorandum of Understanding with such regulatory body as it
considers appropriate in order to exchange or share information for the purpose of
discharging its functions under this Act.
(2) The Council may enter into a Memorandum of Understanding with the Bank of Mauritius, the
Financial Services Commission and the Registrar of Companies for the purposes of assisting
them in the discharge of their functions.
shall disclose any information relating to the affairs of the Council or of any other person, which
he has obtained in the performance of his duties or the exercise of his functions under this Act,
unless such disclosure is made
(i)
with the written authorisation of the person from whom the information was
obtained or, where the information is the confidential information of a third person,
with the written authorization of such person;
(ii)
(iii)
28.
29.
Accountability of Council
(1) The Council shall, subject to subsection (5), submit to the Minister an annual report on its
affairs and functions during that financial year, within 4 months of the close of its financial
year, and such report shall include
(a) a copy of its audited annual financial statements, together with the report of the Director
of Audit thereon;
(b) an overview of the activities of the Council;
(c) an account of the extent to which the objects of the Council have been achieved in that
financial year;
(d) a profile of the members of the Council, their attendance of meetings of the Council, and
their remuneration; and
(e) a profile of the Chief Executive Officer, the senior employees and members of the
Committees and Panels, and their respective remuneration.
(2) The Council shall ensure that its annual financial statements are prepared in accordance with
the standards set out under this Act or any regulation made under the Act in
compliance with the IFRS issued by IASB.
(3) The annual financial statements of the Council shall be audited by the Director of Audit.
(4) The Minister shall, at the earliest available opportunity, lay a copy of the annual report before
the National Assembly.
(5) The period starting from the commencement of this Act to 30 June in the next year shall be
deemed to be the first financial year.
30.
Funding
(1) The Council shall establish a General Fund into which all monies received by the Council
shall be paid, and out of which all payments and charges on the Council shall be effected.
(2) The Council shall derive its funds from
(a) funds allocated to it by the Government,
(b) fees or other charges levied under this Act; and
(c) such other source as may be approved by the Minister.
(3) The Council shall, not later than 3 months before the commencement of each financial
year, submit to the Minister an estimate of its income and expenditure for that financial
year.
31.
Exemptions
Notwithstanding any other enactment, the Council shall be exempt from the payment of any duty,
levy, charge, fee, rate or tax.
32.
Powers of Minister
The Minister may give such directions to the Council, not inconsistent with the provisions of this
Act, as he considers necessary in the public interest and the Council shall comply with those
directions.
Licensing of auditors
(1)
Subject to subsection (1A) Subject to the other provisions of this section, no person shall
hold any appointment, or offer any services for remuneration, as an auditor, unless he holds a
licence under this Act.
(1A) Subsection (1) shall not apply to the auditor of a small private company under the
Companies Act 2001.
(1A)
(1A)
(1B)
(1C)
(b)
(c)
(b)
(2)
Every person who wishes to obtain a licence shall make a written application to the
Council.
(3)
An application made under subsection (2) shall be accompanied by such fees and such
information as the Council may require.
(4)
Where, after consideration of an application, the Council is satisfied that the applicant
(a)
(b)
(c)
the Council shall issue a licence to the applicant authorising him to practice as an auditor.
(5)
The Council shall enter the name of the licensed auditor and such particulars as it
considers relevant, in the Register of Licensed Auditors.
(6)
Any person who contravenes subsection (1) shall commit an offence and shall, on
conviction, be liable to a fine not exceeding 500,000 rupees and to imprisonment for a term not
exceeding 2 years.
34.
Duration of licence
(1) Every licence issued under section 33 shall be valid for such period as the Council may
determine.
(2) Every licensed auditor who wishes to renew his licence shall, not later than 3 months before
the expiry of the licence, make a written application to the Council in such form and manner
as the Council may determine.
(3) Where the Council is satisfied that the applicant continues to meet the requirements for the
issue of a licence, the Council shall renew the licence.
(4) Where the Council has not dealt with an application for the renewal of a licence under
subsection (2) before the expiry of the licence, the licence shall continue to be in force until
the application for renewal is dealt with and any renewal in such case shall be taken to have
commenced from the day when the licence would have expired but for the renewal.
35.
(6) Where a licensed auditor or any other partner resigns or joins a firm, the firm shall forthwith
inform the Council in writing of that fact.
35A.
36.
Change of name
(1) Every licensed auditor and audit firm shall, where there is a change in his name or the name
of the firm as the case may be, or in any of his or its particulars recorded in the Register of
Licensed Auditors, notify the Council of such change within 30 days of the change occurring,
in such manner as the Council may require.
(2) Any person who fails, without reasonable excuse, to comply with subsection (1) shall commit
an offence and shall, on conviction, be liable to a fine not exceeding 100,000 rupees.
37.
in the case of a partnership, of the first names and initials of the partners of the firm;
(ii)
(iii)
where the name of the firm is similar to, or includes the name of a regional or
international network, or where the name of the firm mentions that it is part of a network
in its letterhead or any other document, the nature of such association or relationship with
the regional or international network; and
(c) sign any account, statement, report or other document which purports to represent work
performed by the licensed auditor, unless he is satisfied and is prepared to take full
responsibility for the work done.
38.
39.
(1) Where an auditor makes a report on the financial statements of an entity which he has
audited, he shall express a clear written opinion in his report, giving details as to whether
(a) the financial statements as a whole give a true and fair view of the matters to which they
relate; and
(b) the financial statements comply with
(i)
(ii)
(2) No licensed auditor shall, in his report, express an opinion unless he has complied with the
auditing standards issued by the Council under section 73.
(3) Where, in the annual report of the entity, the directors disclose the extent of compliance
with the Code of Corporate Governance, the auditor shall report whether the disclosure is
consistent with the requirements of the Code.
(3) The Licensed auditor shall report on the extent of compliance with the Code of Corporate
Governance disclosed in the annual report of the public interest entity and on whether the
disclosure is consistent with the requirements of the Code.
40.
Material irregularity
(1) Where, during the course of the audit of a public interest entity, a licensed auditor is satisfied,
or has reason to believe, that a material irregularity has taken or is taking place, he shall,
without delay
(a) notify in writing the officers and all the members of the Board of the public interest entity
of the irregularity, by giving particulars of the irregularity; and
(b) request every person referred to in paragraph (a), either individually or collectively, to
take such action as he may deem necessary, and to acknowledge receipt in writing of the
notice.
(2) The licensed auditor shall, within 30 days of the issue of notice referred to under subsection
(1), notify the Council and the Mauritius Institute of Professional Accountants of the material
irregularity referred to in subsection (1), together with such other information as he deems fit,
unless he is satisfied that the officers or the members of the Board of the public interest entity
referred in subsection (1), have taken adequate steps to remedy the irregularity.
(3) For the purposes of this section
material irregularity means any unlawful act or omission committed by any person
responsible for the management of a public interest entity, which
(a) represents a material breach of any fiduciary duty owed by such person to the public
interest entity or the conduct or management thereof;
(b) has caused or is likely to cause material financial loss to the public interest entity or to
any partner, member, shareholder, creditor or investor of the public interest entity in
respect of his or its dealings with that entity; or
(c) is fraudulent or amounts to theft.
41.
Independence of auditor
An auditor shall carry out his functions in full independence and shall not
(a) act in any manner contrary to the Code of Professional Conduct and Ethics; or
(b) engage in any activity which is likely to impair his independence as an auditor.
42.
Conflict of interest
Where an auditor considers that he may have a conflict of interest in relation to an entity for
which he has been engaged as an auditor, he shall disclose to the entity the nature of the conflict
of interest in order for the entity to determine the extent of the conflict and to decide whether to
continue retaining the services of the auditor.
43.
45.
46.
47.
48.
49.
(1) The Board of the Mauritius Institute of Professional Accountants shall have power to do
anything for the purpose of discharging the functions of the Mauritius Institute of
Professional Accountants under this Act, or under the rules of the Mauritius Institute of
Professional Accountants.
(2) Without prejudice to the generality of subsection (1) but subject to this Act, the powers of the
Board shall include the power to
(a) enter into such contracts as may be necessary or expedient for the purpose of discharging
its functions;
(b) become a member of, an affiliate of, an international body, the functions or objects of
which are similar to or connected with those of the Mauritius Institute of Professional
Accountants;
(c) establish and administer such systems or schemes as the Mauritius Institute of
Professional Accountants may consider necessary or expedient for the discharge of its
functions;
(d) engage in any activity, either alone or in conjunction with any other organisation or
agency, whether local or international, that is connected with or that is conducive to the
discharge of its functions;
(e) impose such fees and charges as maybe necessary prescribed in the discharge of its
functions under this Act;
(f) recognise any accountancy qualifications, as are in the opinion of the Board, equivalent
to those of a member of the professional accountancy body; and
(g) do such other acts as are incidental or necessary to any of its functions and powers.
50.
Registers
(1) The Mauritius Institute of Professional Accountants shall
(a) record in the Register of Professional Accountants the name and all relevant particulars
of every registered professional accountant;
(b) record in the Register of Public Accountants the name and all relevant particulars of
every registered public accountant;
(c) record in the Register of Member Firms the name and all relevant particulars of every
registered member firm.
(d) record such other information in the appropriate register, as it deems necessary; and
(e) publish, not later than 3 months after the end of its financial year, in the Gazette, and for
3 consecutive days, in not less than 2 daily newspapers, an annual list of professional and
public accountants, and names of member firms.
(e) publish not later than 3 months after the end of its financial year, in the Gazette and in
2 daily newspapers in Mauritius, of which one at least shall be approved by the Chief
Executive Officer, an annual list of professional and public accountants and the names
of member firms.
(e) give public notice, not later than 3 months after the end of every financial year, of a list
of(i)
(ii)
public accountants and member firms with their names, business addresses,
and business registration numbers under the Business Registration Act.
(2) The Register of Professional Accountants, the Register of Public Accountants and the
Register of Member Firms shall at all reasonable times be available for inspection by any
person, on payment of such fee as may be approved by the Mauritius Institute of
Professional Accountants prescribed.
51.
(4) (a) An application made under this section shall be accompanied by such fees as may be
prescribed and such information as the Mauritius Institute of Professional Accountants may
determine.
(b) Every member of a professional accountancy body referred to in subsections (2) and
(3) who is employed by the Government, a local authority under the Local Government Act
2011 or the Rodrigues Regional Assembly under the Rodrigues Regional Assembly Act
shall be exempt from the payment of fees referred to in paragraph (a) during the period of
his employment.
(5) The Mauritius Institute of Professional Accountants shall register the applicant as a
professional accountant and enter his name and such particulars as the Mauritius Institute of
Professional Accountants considers relevant, in the Register of Professional Accountants
where the applicant
(a) is a citizen of Mauritius, or where he is a non-citizen, he holds a work permit or is legally
exempted from holding a work permit;
(b) is a member of a professional accountancy body;
(c) is of good character and has not been convicted of an offence involving fraud or
dishonesty in any country;
(d) has successfully undergone such examination or assessment as the Mauritius Institute of
Professional Accountants may deem fit for the purpose of determining whether he
possesses adequate professional accountancy knowledge and skills; and
(e) has paid such fees as the Mauritius Institute of Professional Accountants may
determine may be prescribed.
(6) Any person who contravenes subsection (1) or (3A)(b) shall commit an offence and
shall, on conviction, be liable to a fine not exceeding 50,000 rupees.
52.
(ii)
(iii) he submits to the person to whom the services are to be supplied a photocopy of
his practising certificate.
(c) Any professional accountant who, on the date immediately before the commencement
of this subsection, is not registered as a public accountant, shall, within 3 months of the
commencement of the subsection, comply with paragraph (b).
(2) (a) An application made under subsection (1) shall be accompanied by such fees as may be
prescribed and such information as the Mauritius Institute of Professional Accountants may
require.
(b) Any person who fails to comply with subsection (1), (1A) or (2)(a) shall commit an
offence and shall, on conviction, be liable to a fine not exceeding 50,000 rupees.
(3) The Mauritius Institute of Professional Accountants shall register an applicant under
subsection (1) as a public accountant and enter his name and such particulars as the Mauritius
Institute of Professional Accountants considers relevant in the Register of Public Accountants,
where it is satisfied that the applicant
(a) meets the requirements laid down in the rules of the Mauritius Institute of Professional
Accountants;
(b) has made such arrangements as may be provided in the rules of the Mauritius Institute of
Professional Accountants, for continuing professional education;
(c) is a fit and proper person;
(d) has the necessary competence to practise as a public accountant and a period of more
than 2 years has elapsed between the date he has undertaken any education and training
as provided by the rules of the Mauritius Institute of Professional Accountants and the
date of the application.
(4) The Mauritius Institute of Professional Accountants may, require, as a condition for a public
accountant to be allowed to remain in practice, that the public accountant comply with any
continuing educational and professional requirements as may be specified in the rules of the
Mauritius Institute of Professional Accountants.
53.
(ii)
(2) Where the Mauritius Institute of Professional Accountants refuses to register an applicant
under this section, it shall inform the applicant in writing of its refusal as soon as is
reasonably practicable.
54.
(1A) (a)
Every firm which provides or intends to provide professional services shall apply
for registration to the Mauritius Institute of Professional Accountants.
(b)
No firm shall provide professional services or offer its services for
remuneration as a firm providing professional services, unless
(i)
(ii)
(iii)
(c)
Any firm which, on the date immediately before the commencement of this
subsection, is not registered as a member firm, shall, within 3 months of the commencement of
the subsection, comply with paragraph (b).
(2) (a) An application under subsection (1) shall be made in writing to the Mauritius Institute of
Professional Accountants in such form and manner as the Mauritius Institute of Professional
Accountants may determine.
(b) An application made under subsection (1) shall be accompanied by such fee as may be
prescribed and such information as the Mauritius Institute of Professional Accountants may
require.
(c) Any person who fails to comply with subsection (1) shall commit an offence and shall,
on conviction, be liable to a fine not exceeding 100,000 rupees.
(3) The Mauritius Institute of Professional Accountants shall register the firm and enter its name
and such particulars as it considers relevant in the Register of Member Firms, upon being
satisfied that -.
(a) at least half of the partners of the firm are registered with the Mauritius Institute of
Professional Accountants;
(b) there is a written undertaking by the applicant firm and the partners individually that they
shall be bound by the disciplinary provisions of the rules of Mauritius Institute of
Professional Accountants;
(c) the applicant firm holds a professional indemnity insurance, or provides such other
financial guarantee as the Mauritius Institute of Professional Accountants may from time
to time determine.
55.
(c) a firm as a member firm, it shall issue to the person or the firm, as the case may be, a
certificate of registration.
(2) Where the Mauritius Institute of Professional Accountants registers a person as a public
accountant, it shall issue to him a practising certificate.
(3) A certificate of registration and a practising certificate shall be issued in such form and upon
payment of such fees as may be determined by the Mauritius Institute of Professional
Accountants prescribed.
55A.
56.
57.
Renewal of registration
(1) Any person wishing to renew his practising certificate upon expiry thereof may, not less than
one month before the date of expiry, make an application to the Mauritius Institute of
Professional Accountants for the renewal of the certificate in such form as may be approved
by the Mauritius Institute of Professional Accountants.
(2) Any member firm wishing to renew its certificate of registration upon expiry thereof may, not
less than one month before the date of expiry, make an application to the Mauritius Institute
of Professional Accountants for the renewal of the certificate in such form as may be
approved by the Mauritius Institute of Professional. Accountants.
(3) An application under subsections (1) and (2) shall be accompanied by such fees as may be
prescribed and such information as the Mauritius Institute of Professional Accountants may
require.
58.
60.
61.
(ii)
(iii)
(iv)
(v)
(b) file a copy of the annual report referred to in paragraph (a) with the Council within 3
months of the close of its financial year.
(3) The period starting from the commencement of this Act to 30 June in the following year shall
be the first financial year.
62.
Appointment of auditor
(1) The Mauritius Institute of Professional Accountants shall, at each Annual General Assembly
appoint an auditor who shall hold office until its next Annual General Assembly.
(2) Where the auditor appointed under subsection (I) is incapable, for any reason, to hold his
office, the Board may appoint another person to audit the accounts of the Mauritius Institute
of Professional Accountants.
(3) A person shall not be eligible for appointment under subsection (1) unless he is a licensed
auditor.
(4) No person shall be qualified to be appointed as an auditor where he is
(a) a member of the Board of the Mauritius Institute of Professional Accountants; or
(b) a partner of a member of the Board of the Mauritius Institute of Professional
Accountants;
(5) The remuneration of the auditor shall be determined by the Mauritius Institute of Professional
Accountants at its General Assembly.
64.
65.
66.
(5) Every member shall be paid such fees as the Minister may determine.
67.
68.
69.
70.
71.
entity, other than a public interest entity, shall comply in the preparation of its financial
statements and reports.
73.
Auditing standards
(1) The Council shall develop, issue and keep up-to-date auditing standards, and ensure
consistency between the standards issued and the auditing standards and pronouncements of
the International Auditing and Assurance Standards Board.
(2) The Council may issue rules and guidelines for the purpose of implementing the auditing
standards.
(2) The Council may issue rules and guidelines for the purposes of implementing
(a) The financial reporting and accounting standards referred to in section 72; and
(b) The auditing standards.
(3) Every licensed auditor shall, in the exercise of his profession, comply with
(a) such minimum requirements as shall be specified by the Council in the auditing standards;
(b) any rule and guideline issued under this Act.
74.
75.
75.
76.
Where a public interest entity is required under any enactment to prepare a financial
statement or report, it shall ensure that the financial statement or report is in compliance
with the financial reporting requirements of this Act or any other relevant enactment, any
regulations or rules made under this Act and with the IFRS.
(2)
Every public interest entity shall, subject to section 6A(5) of the Statutory Bodies
(Accounts and Audit) Act, adopt corporate governance in accordance with the
National Code of Corporate Governance.
(3)
Where a public interest entity does not adopt corporate governance under subsection
(2), it shall explain its reasons in any financial statement or report referred to in
subsection (1).
(3)
Every public interest entity under subsection (2) shall submit to the Council a
statement of compliance with the Code of Corporate Governance and where there is no
compliance, the statement shall specify the reasons for non-compliance.
statement and report with the Council, in such manner as may be set out in the rules of the
Council.
(4) Nothing in this section shall be taken to compel the production by any public interest entity,
its employee and the auditor responsible for the audit of the financial statements, of any book,
document, record or material containing
(a) any information which is confidential under the Banking Act or any other enactment; and
(b) a privileged communication by or to a legal practitioner in that capacity,
except in so far as the disclosure of the information is made according to law.
(5) Any person who fails to comply with subsection (1A) or with any requirement under
subsection (2) shall commit an offence and shall, on conviction, be liable to a fine not
exceeding 50,000 rupees.
77.
78.
Power of investigation
(1) The Council may investigate or cause to be investigated
(a) any complaint of dishonest practice, negligence, professional misconduct, or malpractice
made against a licensed auditor; or
(b) Any breach of the Code of Professional Conduct and Ethics by a licensed auditor; or
(c) Any material irregularity notified to it pursuant to section 40(2)
(2) Where the Council investigates a complaint
(a) it shall notify the auditor whose conduct, act or omission is under investigation of the
nature of the complaint;
(b) it may summon and hear the auditor;
(c) it may summon and hear witnesses;
(d) it may call for relevant documents and make such copies thereof as it thinks fit; and
(e) it may review any financial statement and report filed with any government department
or authority.
(3) Every public interest entity or auditor shall, subject to subsections (4) and (5), produce any
relevant book, record or document in his possession or under his control to the Council where
the Council is conducting an investigation for the purposes of subsection (1)
(4) A person may refuse to answer a question put to him or refuse to furnish any information,
document, record or book, where the answer to the question or the production of the
document, record or book might tend to incriminate him.
(5) Nothing in this section shall be taken to compel the production by the auditor, the public
interest entity or its officer of any book, document, record or any other material containing
(a) any information which is confidential under the Banking Act or any other enactment; and
(b) privileged communication by or to a legal practitioner in that capacity, except in so far as
the disclosure of the information is made according to law.
(6) The Council shall refer the findings of any investigation under subsection (I) to the
Enforcement Panel for the determination of the appropriate sanction to be imposed.
79.
80.
Publication
(ii)
(b) cause to be published in the Gazette and in a daily newspaper a notice relating to the rules of
the Council which have been made, altered or revoked.
(2) The Council may cause to be published in the Gazette or in its Official Bulletin or in a daily
newspaper, its findings or decisions under sections 21(2), 23(7), 43 and 79.
81.
Referral to police
Without prejudice to the powers of the Council under this Act, where an investigation carried out
by, or on behalf of the Council, reveals that an offence may have been committed, the matter
under investigation shall be referred to the Police.
82.
Appeals
Any person aggrieved by a final decision of the Council or the Mauritius Institute of Professional
Accountants may appeal to the Supreme Court by way of judicial review.
Consequential amendments
(1) The Statutory Bodies (Accounts and Audit) Act is amended in section 2, by deleting the
definition of "qualified auditor" and replacing it by the following new definition
"qualified auditor" means
(a) an auditor licensed under the Financial Reporting Act 2004; and
(b) the Director of Audit;
(2) The Companies Act 2001 is amended in sections 211(3) and 214(3) by deleting the words
"Mauritius Accounting and Auditing Standards Committee Act 1989" and replacing them by
the words "Financial Reporting Act 2004";
(3) Section 212 of the Companies Act 2001 is deleted and replaced by the following section
212. Presentation of Consolidated Financial Statements
The Board of a company that has, on the balance sheet date of the company, one or more
subsidiaries, shall, in addition to complying with section 210, ensure that, within 6 months
after the balance sheet date, it complies with IFRS in relation to the presentation of group
financial statements.
84.
Transitional provisions
(1) The Minister shall, pending the holding of the General Assembly, appoint 5 members to the
interim Board of the Mauritius Institute of Professional Accountants, of which one shall be
appointed as interim Chairperson.
(2) All 5 members of the interim Board shall be members of the professional accounting bodies,
provided that no single professional accounting body shall be represented by more than 2
members.
(3) The interim Board shall
(a) set up the registers of its members and shall hand over such registers to the elected Board
following the holding of the first General Assembly;
(b) draft the rules governing the Mauritius Institute of Professional Accountants for
submission to the General Assembly of the Mauritius Institute of Professional
Accountants for approval; and
(c) within 3 months of its constitution under subsection (1), organise and convene the first
General Assembly of the Mauritius Institute of Professional Accountants which shall
elect the Board of the Mauritius Institute of Professional Accountants and approve the
rules of the Mauritius Institute of Professional Accountants.
(4) The interim Board shall be dissolved when the new Board of the Mauritius Institute of
Professional Accountants is constituted pursuant to section 47.
(5) Notwithstanding sections 51, every person who, immediately before the coming into operation of
this Act, is a member of a professional accountancy body, shall, upon providing evidence of his
membership of the professional accountancy body to the Mauritius Institute of Professional
Accountants within 3 months of the effective date, be deemed to be registered as a professional
accountant under this Act.
(6) Notwithstanding section 52, every person who, immediately before the coming into operation of
this Act, is a member of a professional accountancy body, and is offering professional services to
the public, may continue to offer his professional services to the public without being registered
as a public accountant under this Act
(a) during the period of 6 months beginning with the effective date; and
(b) where, an application for registration as a public accountant is made within that period,
until that application is finally disposed of or withdrawn.
(7) Notwithstanding section 34, every person who, immediately before the coming into operation of
this Act -
(a) is or has been practising as an auditor, may continue to practise as an auditor without being
licensed under this Act
(i)
during the period of one year beginning with the effective date; and
(ii)
where, within that period an application is made for a licence, until that application is
finally disposed of or withdrawn;
(b) is or has been practising as an auditor, whether or not on his own account, or in partnership
with other persons under a firm name, shall continue to practise under the firm name without
the approval of such firm name by the Council under this Act
(i)
during the period of one year beginning with the effective date; and
(ii)
where, within that period an application is made for approval, until that application is
finally disposed of or withdrawn.
(8) Notwithstanding section 34, every person who, immediately before the coming into
operation of this Act, is or has been working as an approved auditor pursuant to the
Companies Act 2001, may continue to work as an approved auditor under that Act
without a licence under this Act
(i)
during the period of one year beginning with the effective date; and
(ii)
where, within that period an application is made for a licence, until that
application is finally disposed of or withdrawn.
(9) Notwithstanding the provisions of Part VI of this Act, no state-owned enterprise shall be
required to comply with the financial reporting requirements imposed under this Act
before 30 June 2006.
85.
86.
Regulations
(1) The Minister may, for the purposes of this Act, make such regulations as he thinks fit.
(2) The Minister may, by regulations, amend the Schedules.
(3) Regulations made under subsection (1) may provide for the levying of fees and charges
referred to in sections 49, 50, 51, 52, 54, 55, 57 and 60.
87.
Commencement
(1) Subject to subsection (2), this Act shall come into operation on a date to be fixed by
Proclamation.
(2) Different dates may be fixed for the coming into operation of different sections of this Act.
Passed by the National Assembly on the twenty third day of November two thousand and four.
FIRST SCHEDULE
(section 2)
Public Interest Entity
"public interest entity" means any entity which has an annual revenue exceeding 250 million rupees at the
end of its preceding accounting year, or meets any 2 of the following conditions
(a) it has an annual revenue over 150 million rupees;
(b) it employs over 100 persons;
(c) it has total assets greater than 100 million rupees or total liabilities greater than 30 million rupees,
at the end of its preceding accounting year.
FIRST SCHEDULE
ENTITIES
1.
2.
Financial institutions, other than cash dealers, regulated by the Bank of Mauritius
3.
Financial institutions regulated by the Financial Services Commission, from the following
categories
(a)
(b)
(c)
(d)
persons licensed under section 14 of the Financial Services Act to carry out leasing,
credit finance, factoring and distributions of financial products to the extent that the
services supplied are by retail.
4.
Any company or group of companies having, during 2 consecutive preceding years, at least 2
of the following
(a)
(b)
(c)
SECOND SCHEDULE
(section 2)
State-Owned Enterprises
1. Agricultural Marketing Board
2. Board of Investment
3. Central Electricity Board
4. Central Water Authority
5. Development Works Corporation
6. Export Processing Zones Development Authority
7. Farmers' Service Corporation
8. Financial Services Promotion Agency
9. Food and Agricultural Research Council
10. Industrial and Vocational Training Board
11. Irrigation Authority
12. Mahatma Gandhi Institute
13. Mauritius Broadcasting Corporation
14. Mauritius College of the Air
15. Mauritius Examinations Syndicate
16. Mauritius Industrial Development Authority
17. Mauritius Film Development Corporation
18. Mauritius Freeport Authority
19. Mauritius Institute of Education
Page 47 of 47
FIRST SCHEDULE
(section 2)
Entities
Agricultural Marketing Board
Central Electricity Board
Central Water Authority
Irrigation Authority
Mauritius Broadcasting Corporation
Mauritius Meat Authority
Mauritius Ports Authority
Mauritius Sugar Terminal Corporation
National Transport Corporation
Road Development Authority
Rose Belle Sugar Estate Board
Oath of Confidentiality
IN THE SUPREME COURT OF MAURITIUS
I.. being appointed
(Chairperson / Member of Council / Member of Committee / Member of a Panel of Experts / Chief
Executive Officer / Secretary / employee / consultant) do hereby swear / solemnly affirm that I will, to the
best of my judgment, act for the furtherance of the objects of the Council and shall not, on any account
and at any time, disclose, otherwise than with the authorisation of the Councilor where it is strictly
necessary for the performance of my duties, any information of a confidential nature obtained by me in
virtue of my official capacity.
Signature
Taken before me,.